In a festive gesture ahead of Diwali 2025, the Union Cabinet has approved a 3 percent increase in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners, raising the rates from 55 percent to 58 percent. This hike will be effective from July 1, 2025, and arrears for the months of July, August, and September are to be paid along with the October salary.
Alongside the DA boost, the government has sanctioned an “ad-hoc bonus” (non-productivity linked bonus) for the fiscal year 2024–25. Eligible central government employees in Group C and non-gazetted Group B will receive a bonus equivalent to 30 days’ salary, fixed at ₹ 6,908, as per the guidelines issued in the Finance Ministry’s order dated September 29, 2025. To qualify, employees must have been in service as of March 31, 2025, and completed at least six months’ continuous service during the year; pro rata payment applies if service was between six months and a full year.
These latest measures are being viewed as a bridge between the outgoing 7th Pay Commission regime and the upcoming 8th Pay Commission, which is expected to take effect from January 1, 2026. The 8th Pay Commission has already been approved in principle (the government decided to constitute it earlier in 2025), but formal notification of its chairperson, members, and terms of reference is still pending.
The combined impact of the DA increase, arrears, and bonus is being welcomed by central employees as a timely festive relief, although many look ahead to the larger structural pay revisions promised under the 8th Pay Commission.
If you want, I can also pull up official government orders or circulars about the bonus and DA hike so you can see the authentic source. Do you want me to fetch those?
